Nearly every business can use cloud computing to cut costs and get the resources they need to reach their goals. This includes processing, storage, and applications deployment. Since small businesses don’t have the available capital that larger organizations do, they’ve found that cloud-based tools have cost advantages. While cost is a big consideration, there are other factors that you have to consider before you commit to cloud-based computing for your business. Let’s take a look at some of these factors.

About Cloud Computing

Let’s start with the benefits. Obviously, the cost issue is the number one benefit, especially if you are talking about software. Software-as-a-Service (SaaS) is the most utilized cloud computing tool. The global SaaS market was worth roughly $230 billion in 2022 and it is growing very rapidly. Estimates for cloud growth are estimated at between 12 and 15 percent year over year. This prevalence not only speaks to the viability of using cloud tools for your business, but also that developers have embraced the delivery method, as it is advantageous for all parties.

SaaS tools work like this. Say your business wants access to an application. In the past, you would have to purchase a yearly license for that software and then host it on your own infrastructure, manage that infrastructure to ensure that it works optimally and renew your license each year. This is how it was done for decades. SaaS makes an application available on a managed, maintained, and updated computer in the cloud that a customer pays a subscription fee to use as if they own it. So not only does a user get access to an application without having to buy the whole software license, they get it on reliable hardware that is managed by the provider. 

The cloud isn’t just software, you can get the storage and processing your organization needs, as well.

Benefits of this Model

It doesn’t take a lot to see some pretty awesome benefits of this model. Firstly, you save money. Sure, the cloud subscription will be a little more expensive over a year than a single software license, but it allows for much more flexibility in your organizational technology decision-making. Since you can choose to add or reduce your subscriptions to meet the needs of your business, you won’t waste money on unnecessary licenses.

Cloud computing may not be the most talked-about aspect of running a business, but it‘s one of the most widely used. More than 92% of companies use services that are connected to or run in the cloud, which means the trend toward cloud-based computing is here to stay. If you’re not using one of these services yet, you may be wondering about the benefits of moving your computing tasks online. Here are the most-cited perks of cloud computing, with advantages for small to large companies, nonprofits, and other businesses.

• Potential cost reduction
• Fast scalability
• Promoted collaboration and efficiency
• Provider-side encryption and updates to improve data security

Problems with Using Cloud Computing

While utilizing the cloud is something that over 90 percent of businesses do, there are some reasons to be cautious about cloud computing. The first reason is the deployment method itself. In order to use the cloud, you need a high-speed Internet connection. While that isn’t a pressing issue for most people, there are times when you don’t have access to an Internet connection or the connection that you do have access to is unreliable or unsafe. While most cloud platforms have security features baked right in, data in transit can open an organization up to risk.

Over 90 percent of businesses wouldn’t be using cloud platforms if data security was a huge risk, however. 

The benefits far outweigh the drawbacks of cloud computing. If you would like to learn more about how to get the computing your business needs in the cloud, give the IT experts at Compudata a call today at 1-855-405-8889.